Skip to main content

tv   Mad Money  CNBC  December 7, 2012 6:00pm-7:00pm EST

6:00 pm
>> i will do the short sandwich trade. short aussie. >> dollar yen had a significant breakout. i think it continues to have a breakout ahead of elections. >> watch the pivot point and aussie. >> that is it for us here at "money in motion." your next chance for a trade sunday afternoon. cnbc. have a great weekend. i'm jim cramer, and welcome to my world. >> you need to get in the game. >> firms are going to go out of business, and he's nuts! they're nuts! they know nothing! >> i always like to say there's a bull market somewhere and i -- >> "mad money." you can't afford to miss it. hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. i'm just trying to help you save some money. my job is not just to entertain you but i'm trying to educate and teach you. call me.
6:01 pm
1-800-743-cnbc. you want to get a sense of just how important this -- i hate to even say it anymore -- fiscal cliff is? today we got an incredible employment report from the labor department. with 146,000 new jobs. i was looking for 90,000. the unemployment rate dropping to 7.7. i thought it might be 8%. and all this despite the effects of hurricane sandy. who knows how high we could have been if it weren't for that darn hurricane? yet the market barely blinked. yet the potential layoffs if we go over the cliff make these rearview numbers seem almost irrelevant to the market. hence the mixed performance of the averages today. sure, dow gained 81 points, but the s&p barely budged, edging up 29%. and the nasdaq actually declined .38%, led once again by the slip sliding away apple, which you know i like, but how many times during a particular show can i say i like it? so with that in mind, what's the
6:02 pm
game plan for next week? first off, perhaps the most important day of the week is monday. but not for any earnings. not for any releases. that's when we process the results of the weekend talk shows, which you now have to watch as if we were instead of watching, you know, college gameday, i'm watching like some of those other news stations -- and then of course sunday morning whoever -- you don't even pay attention -- football means nothing now, right? it's all this. last week we saw the positions harden on both sides of the aisle. the market didn't like it. we will watch "meet the press" with david gregory and the others to gauge the real opportunities for a deal. is the administration out to break the pledge republicans made to never raise taxes on the rich as per major domo grover norquist, who rivals the congressional leadership control over the very thought patterns of those who signed his pledge. grover's bound to go after republicans with impure thoughts who are being seduced, i heard these words myself on "meet the press," by the democrats. well, of course i was sitting about three feet from him. i wonder, are there enough members of the gop who study higher tax pornography with that seduce stuff?
6:03 pm
maybe this weekend have the impure thoughts thing we ought to call old-time supreme court justice potter stewart. "i will know it when i see it." sometimes i feel bad for the speaker, speaker boehner. he's caught between the elected obama and the ufrn elected norquist crossfire. there's not a lot of room to maneuver in that space. tuesday we've got two big investor meetings. first there's dell world. dell world? i like kirby's fourth world. there's dell world. is the risk taken out of this one now? it's down so low. or does it even matter? deleveraged buyout as goldman hinted in its sell-buy research upgrade this week? second, there's a -- how many times can you tell us that monster drinks aren't any worse and may actually be better than a cup of joe from starbucks? let us count the ways that this analyst meeting slash lovefest, they will tell you that there's no better way to preserve your heart than to drink a taste of monster every morning.
6:04 pm
now, analysts will be plenty hopped up when they come out of this meeting because they'll be recommending this stock in high-speed fashion. next on wednesday we're going to get the results from joy global. here's the company that has the best read on chinese growth of all the companies i follow. in fact, joy global called the bottom in the slide over there by analyzing data on chinese electricity use. can't be jiggered. people think this is an original equipment business, but i've got to tell you once again we're going to hear from the straight-shooting ceo michael sutherland that maintenance is more important. maintaining it is the equivalent. i'm going to listen to what he says about india. we don't talk bindia enough. they are like coal junkies over there. it's like get me the kingsfords. after the close wednesday we hear from restoration hardware. we've all been gaga lately for housing plays but this one seems to be overlooked. i urge you to take a fresh look at the restoration ahead of the quarter because i think the comps, so to speak, ethan allen and williams-sonoma, have been very strong. i like when companies just came public because they give you the first numbers. they tend to be good ones.
6:05 pm
very rarely do you get a real stinker right out of the chute. speaking of housing plays, cramer fave pier one comes out on thursday morning. will pier one continue to deliver? did sandy hurt them? they've got a lot of stores in the northeast. probably want to know that. right? they sell a lot of seasonal merchandise. that's where i get my turkey napkin holders. you know those little things that -- they'll let us know. we've been behind pier 1 ever since alex smith turned it around and then he went out of the niners and they pulled -- no, it's a different alex smith. this is a british one. i bet this time will be no different. i think pier 1 delivers. then telco equipment maker ciena reports thursday morning. spending by the big firms, att, verizon, sprint, it has been inordinately geared toward cell phone towers and not only optical and software build-up. the starting we've seen in this group which includes juniper and even cisco tells us we should be worried about little cree yeba. even a fellow optical traveler
6:06 pm
had good things to report this week. stay away. also we list a number of important arnlts' meetings on thursday. remember we told you to by the starbucks, that was a really good trade. okay. we've got cvs caremark. i think that's going to be a very interesting session. cvs. right? you use them. sorry, i didn't mean to cross out cvs. i meant to highlight cvs. phillips 66. get your kicks from that analyst meeting. and united technologies. cvs is the cheapest and best drugstore play p i would be willing to buying ahead of the meeting, particularly if you have a little fiscal cliff panic before thursday. which person's going to come on wednesday and create the buying opportunity for cvs? phillips 66 reminds uz house smart it was to break up the old conoco phillips and perhaps put some focus on how hess could be next. united technologies will give us aw fiscal cliff update and a sense of how aerospace is doing now that goodrich, a premium supplier to 'o'space, is part of the family.
6:07 pm
on friday scotts miracle grow. endless excuse making for missed quarters. can they explain the poor execution? i'll listen, but frankly i doubt it. also on friday we get november industrial production and capacity utilization numbers. did november really matter or was it all sandy? i think prices were stagnant. but i want to try to figure out whether the new boom in cars and homes could impact industrial production and capacity utilization no matter what. i'm trying to understand the unemployment number today. after these numbers that we get now, after those we're going to be officially on recession watch going forward, meaning that we expect all the good numbers to kind of let's say peter out because of the fiscal cliff and what it's doing for hiring, or the lack of it. and speaking of the fiscal cliff, let me say to washington, no vacation without legislation. we will be virtually monitoring airports to see which legislators are leaving town now
6:08 pm
that the vacation is supposed to begin. you know what? if we don't have a deal by this vacation, or a pledge not to go away, then the odds go to -- down to 50-50 that we'll get one before the end of the year. and then we may only get one when people look at their take-home play and have a collective bout of nausea from a recognition that there was a fiscal cliff all along and we were just pushed over it. that's how much your paycheck's going to shrink. here's the bottom line. let's hope for the best that our politicians move in the right direction. something we can see as early as sunday morning when they appear on the major political talk shows like "meet the press." but we'll be preparing for the worst. >> the house of pain! >> that our lawmakers go home for the holidays, meaning we will likely go over the cliff and nothing will be done about it until after taxpayers actually feel the real pain. let's go to r.w. in nevada, please. r.w. >> caller: jim, a big fan of yours. thank you for helping people like me. >> i appreciate that. that's why i do the show.
6:09 pm
how can i help? >> caller: i've had dole stock since its september high. and now that david delorenzo is leaving and selling his packaged goods and asian fresh produce to japan, what's your take on the stock? >> yeah, i saw the change in management. and i've got to tell you, i continue to think it's a good story to hold. i know that people feel that somehow it's going to be magic. @jimcramer on twitter i immediately saw a ton of things about isn't this it, now that murdoch's returning to chairman and ceo? no. murdoch's a great businessman who's getting up in years. i think you own the stock because the business model's good. and i like fresh fruit. let's go to bob in california, please, bob. >> caller: boo-yah, jim. >> boo-yah, bob. >> caller: what's wrong with fan in it's down again today after their decent earnings report. is there a possible the new ceo's performance causing a wait and see attitude in spite a spectacular performance in sales and profits? unusual in many retail stocks to
6:10 pm
see many new store openings and healthy profits going on simultaneously. fran seems to be able to do it. >> i know. you know what? here's what we're going to do with fran, because i read the numbers, like you, i saw -- because i wasn't on the conference call. but i read the numbers. i said better than expected top line, better than expected earnings. how much will the stock be up? and the stock was down. what that means is i owe you an explanation and i will come up with one for fran next week. hope for the best. but when you're dealing with washish, prepare for the worst. pay close attention to the talk shows on sunday and the roundup monday. only washington would listen. here's my call to you. no vacation without legislation. "mad money" will be right back. >> announcer: coming up, the wow factor. innovation. it's what drives our economy forward. and tonight cramer's got his eyes on a solution to a life-altering problem. whether you're stranded after a storm like sandy or one of the
6:11 pm
billion people in the world who don't have electricity, this device lets you create your own power. don't move. you've got to see this. and later, data and dollars. as companies head to the cloud, the business of big data becomes all the more crucial. cramer's found one stock at the center of finance and figures that could be attracting some potential suitors. the takeover talk is just ahead. plus -- >> we're going to do some work on this. >> announcer: you sent cramer back to the books. now he's got the answers you need. plus, jim responds to your tweets @jimcramer #madtweets. and your e-mails just ahead. all coming up on "mad money." don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer. #madtweets. send jim an e-mail to or give us a call at
6:12 pm
1-800-743-cnbc. miss something? head to [ male announcer ] this december, remember -- ♪
6:13 pm
you can stay in and like something... ♪ [ car alarm deactivates ] ♪ ...or you can get out there with your family and actually like something. ♪ the lexus december to remember sales event is on, offering some of our best values of the year. this is the pursuit of perfection. offering some of our best values of the year. when you take a closer look... the best schools in the world... see they all have something very interesting in common. they have teachers... ...with a deeper knowledge of their subjects. as a result, their students achieve at a higher level. let's develop more stars in education. let's invest in our teachers... they can inspire our students. let's solve this.
6:14 pm
6:15 pm
here on "mad money" we ordinarily only talk about publicly traded companies. after all, this is a show that's all about helping to try to make you money in the stock market. but lately there's a lot of innovation happening at private companies, companies that are doing really cool things. and you know what i? don't want you to be behind the curve anymore on a big idea just because there isn't yet a way to trade it. that's why i want to introduce you to biolite. it's a private company with an genious product. biolite makes a little portable wood-burning camp stove that not only cooks your food in a way that's clean and safe as petroleum, petroleum-based fuels, but i think this is huge. the energy from the stove can also be used to charge your cell phone or other electronic devices. can you imagine the millions of people in the northeast that were without power and gasoline in hurricane sandy had these camp stoves handy? the blackout would have been a lot more pleasant and i wouldn't have had to worry every minute that my phone would die, which was really my chief -- when i
6:16 pm
was trying to do this phone downtown. my phone kept dying. plus of course there are billions of people in the developing world who don't have access to power but they do have access to cell phones that need charging and they cook using wood-burning fires every day. which is why biolite's also testing a large stove for homes that produce electricity. this is an amazing invention and i think it could change the lives of billions of people. which is why i'm thrilled to have biolight's ceo and its chairman here with us tonight to talk about the revolutionary products. mr. sear, mr. levy, welcome to "mad money." >> thanks very much. >> good to see you. >> good to sigh. >> okay, guys, you're from brooklyn. you're doing this device. this device could change the world. if you were a publicly traded company we'd have to talk about how's the quarter -- no. i just want you to walk me through how you came up with it, what it does, and what it did in hurricane sandy because that was an amazing story. >> great. sure. absolutely. so biolite stoves as you mentioned are wood-burning stoves that generate electricity from the heat of the fire. this yellow part here is an electrical generator. it's kind of like a solar panel
6:17 pm
for heat instead of light. it plugs into the stove. you set it up. you dumb a bunch of twigs in it. and you light them on fire. and when the fire is hot, you can plug your phone in. >> right. i'm going to plug my phone in now. because my phone needs charging. this is a cool thing. there we go. that's 75. it will be at 100 very shortly. >> here we go. if we want to, we can put an l.e.d. light in here and you can see that we're generating light. so in a lot of places this is what people need. they need small amounts of electricity to do really practical things. >> right. so sandy, i had -- out of gasoline. >> right. >> no grid is working. people needed this, right? >> not only that, but right near our office in dunbar we had water that was pouring through. the national guard came through to help people out. we made coffee for them, tea for them. we charged all their cell phones. and we did this all over new york. we did it downtown.
6:18 pm
we did it in washington square park. all over. and then we started distributing the stoves to people in the rockaways. so they could do this at home. >> okay. great service. now, everybody on our crew who has seen this immediately wants to buy one. because they all want to put it, set in in their trunk so if you go camping you can be able to charge your phone and your ipad. are they available yet? >> they are available. they're for sale through our website, we have sold tens of thousands of them this year. and then next we're we'll be in wholesale locations in the u.s. and about ten countries internationally. >> r.e.i. and eastern mountain sports, that kind of thing? >> yeah. companies like that. >> we've shipped these to now 70 countries around the world. and if you go onto our site or go on to youtube you'll see all the videos people are making about how they're using them in every language you can imagine. >> let's talk emerging markets. those people -- i talked to somebody who came back from cambodia. they said it's the strangest
6:19 pm
place in the world, everybody uses wood-burning fireplaces, it's the most dangerous thing, they're polluting the sky, but that's all they have. and they also have cell phones. but they're nowhere able to charge them. >> i was in kenya not long ago and i was in a rural village, people living in traditional garb. i said how many of you have cell phones? every one of them have it. i said where's the electricity? 15 kilometers away. and when they walk there they pay 25 cents to get their cell phone charged. >> so this would be the answer. >> right. not only that, but also it's a much cleaner burn. you'll see with these fires that there's no smoke coming out of it. most people in the developing world are cooking indoors and they're generating tremendous amount of fumes. they're actually killing three times as many people as who die from malaria, and we get rid of 95% of the smoke. so it's much cleaner. we use less wood. and we can give them electricity. >> so i spent a lot of time thinking about apple. everybody does. apple down another 14, up 50.
6:20 pm
people worry about apple because is it doesn't have an omg factor. that's the word. when you show this around, do not people just -- jaws drop, right? >> well, it's amazing. especially our customers are our best advertisers, right? they're the people who are posting hundreds of youtube videos. but it's the psalm thing in emerging markets. so we go to do a demonstration in india, and really cooking is traditionally a woman's task in those communities and we have the men pushing to the front and center of the circle because they want to charge their cell phones. so it creates this really great dynamic where at one time it's a health intervention that's hopefully going to save a couple million lives every year, but the draw is for the same commercial reasons that we would want to have them here. >> now, i would want one of these in my trunk, right? >> right. >> little plastic bag. if i ever got in a jam at the side of the road, i'd stay warm and charge my phone. >> and not only that, it's on-demand energy. we think of it as energy everywhere. >> on demand energy. >> because here we are. it's a rainy day. if we had a solar panel, what
6:21 pm
would happen? it's not working. but we're generating electricity and you're charging your phone right now. >> so you have the patents. what do you have? what do you own about this? >> sure. absolutely. so we do have patents in the u.s. and in asia, africa, and europe. but in addition to that we have an incredible team of engineers and scientists who are not only developing cook stoves but a whole range of energy technologies. and so where we really see our role as a company is in providing personal scale energy access that's affordable and safe and reliable. >> talk about affordability. how much is this? >> these stoves are $130. >> okay. now, you are in brooklyn, new york. but you don't make these here, right? >> we don't. >> you have a factory -- >> we manufacture -- we manufacture in asia. and then -- but it's all based on the designs and the engineering of the team right here in new york. >> now, i've looked at this in the videos. how long does it take me to make
6:22 pm
a pot of tea? >> four minutes. >> it takes us four minutes to boil a liter of water. that's it. >> four minutes? >> four minutes. >> well, guys, look, it is omg. i'm thrilled you that came here. this is jonathan cedar. okay? and john levy. biolite's chairman and ceo. thank you so much, gentlemen. >> thank you. >> stick with "mad money." >> announcer: coming up, data and dollars. as companies head to the cloud, the business of big data becomes all the more crucial. cramer's found one stock at the center of finance and figures that could be attracting some potential suitors. the takeover talk is just ahead. and we can save you 10% on ground shipping over the ups store.
6:23 pm
6:24 pm
look this isn't my first christmas. these deals all seem great at the time... but later... [ shirt ] merry christmas, everybody! not so much. ho ho ho! this isn't that kind of deal. [ male announcer ] break from the holiday stress. save on ground shipping at fedex office.
6:25 pm
just because we're stuck in a real tough environment right now with that darn fiscal cliff deadline looming, three weeks away, our political leaders getting absolutely nowhere -- >> buy buy buy! >> sell sell sell! >> it doesn't mean we stop searching for opportunities to make money. even in the most dismal markets there are always stocks that have the ability to go higher. just got to find them. takes a lot of work. one i've been doing a lot of work on, it's called dst systems. dog sam tom. now, dst is not a great business. hmm. but i think it could be a terrific stock. the reason? i see number signs suggesting that dst could be preparing itself for a sale. and if not, it sure as heck
6:26 pm
should be. but even if dst doesn't get bought out, it has a fabulous story. it's a tale that we've repeated over and over again. it's one that's made big money in a number of stocks for us. see, dst, which is just a terrible name for a company, but that's what they call themselves, is a company where the whole is currently worth a lot less than the parts. now, in recent months dst has started to get aggressive about selling off those parts in order to unlock this hidden value. that's one of the reasons why i think it could be preparing itself for a transaction, and i think they could keep selling all these spare parts until only the core business remains. do i have you intrigued? now we can talk about what this company is. let me explain. dst systems is kind of like a cats and dogs company. no insult to petsmart, which is a real cats and dog company. dst provides in the core business informationg and software services. mainly to financial firms like mutual funds and brokers. and it also has a smaller division which does billing statement printing and mailing
6:27 pm
services for all sorts of businesses. but especially telecom and health care companies. on the financial side, broker-dealers outsource their mutual fund accounting services to dst, which is by far the largest player in this. they've got 50% market share. the company provides transfer agency services to more than 181 million shareholder accounts. however, this financial business, it's been in decline for several years now. it was down 12% in 2011. expected to shrink by another 9% thisser. though this division is expected to stabilize in 2013, hence why i'm willing to do this piece. and even though dst has had a tough couple of years this side of things still throws off a ton of cash. but the real reason i like dst is because the company has a substantial portfolio of investments that really have nothing to do with that business. they don't get nearly enough credit for these holdings. why should they? they have nothing to do with the business. dst has a large stake in state street, the custodial bank. they have significant real estate holdings. major investments in private equity funds. and some direct investments in private companies. when you add up all these disparate assets on top of the core business you get a sum of
6:28 pm
the parts valation pour dst that's worth a heck of a lot more than the current $62 and change share price. credit suisse says the sum of the parts is worth $75 or a 21% increase over where the stock is now. stern a.g. just upgraded the stock today. again, i would not recommend stocks unless the fundamentals are good before i ever say they can be taken over. stern a.g.'s got a very conservative analysis. it pegs some of the parts at $71 a share. that's still 14% more than the current price. so it's kind of like a floor. all right? because know that there's value to the assets. yes, there's real value that can be unlocked. i strongly believe that it will be unlocked. and here's why. dst has already started selling off some of its non-core assets. they sold its stake in the computer share last quarter. they just unloaded the position in euronet worldwide for 45 million last week. these are some of the assets when i was first working on this i thought i can't get that much for it. this may be the first steps to taking dst private or maybe selling it to an acquirer. you sell off the non-core
6:29 pm
assets, sell off the printing and mailing business, which as an industry is way too competitive. and you're left with a pure play financial services company that a private equity buyer might find very attractive. or a financial services acquirer might be intrigued by. given how little growth there is right now in financial services. not only that but i think dst could be a motivated seller, meaning the people running this conditioner seem like they're willing to sell, even eager to sell this whole darn thing. long-time ceo tom mcdonald, guy that's worked at this company for more than 40 years, he stepped down in september. he's 65 years old. but he's staying on as chairman of the board. and he owns 1.7% of the company. meanwhile, there's another board member, george aguires, he's 72 and he owns 22% of the expect to me these guys seem like they might want to cash out. possibly before the end of the year so they can avoid paying higher capital gains tax rates which we will see if we go over the cliff or the president gets his way. a lot of experience in the
6:30 pm
financial services side of things. he's exactly the guy you bring in if you want to sell off dst's cats and dogs assets in order to turn into a pure play in the financial industry. third i bet the cash flow that's dst's main business as well as all the easily monetized non-core assets would look really attractive to a private equity firm. and even if dst systems doesn't catch a bid this company has gradually been taking itself private for years. do you know this company has bought back an astounding 60% of its outstanding shares in the last decade. 40% just since 2006. remember i tell you most buybacks are illusory, they don't really matter? not this one. here's the bottom line. dst's fundamentals are stabilizing and the company has given a number of signs that it could be preparing itself for a -- >> sell sell sell! >> if dst catches a bid, i think this stock could easily go to 75. talk about a quick 21% gain. and even if it doesn't, the company's already set itself on a path of unlocking its hidden value, something that should drive the stock higher even if the company stays public. as usual, i would not recommend a stock on the basis of its takeover value. it's got to be worth something
6:31 pm
on its earnings on its own. in this case dst's finally ready to meet the numbers the exact same time that it's worth much more in the private market than it is in the public one. i need to start with celeste in connecticut. celeste. >> caller: hi, jim. from connecticut. first-time caller. i'm excited. >> thank you. >> caller: back in january you said you like catamaran, ctrx, when it was under its old name, xsa, up 72%. thank you so much. i heard it just signed with target. so how does that look? is it a hold or a sell? >> no, i don't think it's -- you own it. i know it's up a lot. so i understand it is hard to taking capital gains if capital gains go up. but i like the pharmacy benefits business. i also like cvs, reports next week. i want you to stay in this. i think it's a really, really good company. i'm glad that you bought it on our recommendation. let's go to sylvia in florida. sylvia. >> caller: hi, jim. it's so great to hear your voice. i'm a regular. >> thank you.
6:32 pm
>> caller: and i have a question for you about ibm. i've owned it since the beginning of the year and it's gone down significantly. although today it's gone up just a bit. and i understand that the company is changing what they give to the employees for their 401(k) interest. is that going to be a negative for the company? >> no. sylvia, we're fine. ibm, we started -- we owned it for a long time for, my charitable trust, sold it after it had a big run. now buying again. steph ewing, co-director with me, we both think this is one of the cheapest stocks out there. don't forget, warren buffett agrees with us. you know i never recommend stocks on this show on takeover rumors, but i think there's more to dst. it's unlocking its value, even if it doesn't catch a bid. i think it is work a lot. dog sam tom. dst. don't move. "lightning round" is next. >> announcer: coming up -- >> we're going to do some work on this. >> announcer: you sent cramer back to the books.
6:33 pm
now he's got the answers you need. plus, jim responds to your tweets @jimcramer #madtweets. and your e-mails. just ahead. welcome to chevy's year-end event. so, the 5.3-liter v8 silverado can tow up to 9,600 pounds? 315 horsepower. what's that in reindeer-power? [ laughs ] [ pencil scratches ] [ male announcer ] chevy's giving more. get the best offer of the year -- 0% apr financing for 60 months plus $1,000 holiday bonus cash. plus trade up for an additional $1,000 trade-in allowance. hurry. bonus cash ends january 2nd. customer erin swenson bought so, i'm happy. today. sales go up... i'm happy. it went out today... i'm happy.
6:34 pm
what if she's not home? (together) she won't be happy. use ups! she can get a text alert, reroute... even reschedule her package. it's ups my choice. are you happy? i'm happy. i'm happy. i'm happy. i'm happy. i'm happy. happy. happy. happy. happy. (together) happy. i love logistics.
6:35 pm
6:36 pm
it is time. it's time for the "lightning round." say the name of the stock, i tell you whether to buy buy buy or sell sell sell. play until you hear this sound [ buzzer ] and then the "lightning round" is over. are you ready, skee-daddy? time for the "lightning round" on cramer's "mad money." start with phillip in mississippi. >> caller: boo-yah from biloxi, the gambling capital of the south. >> agreed. >> caller: here is the stock. pdce. pdc energy. >> good oil and gas company. marcellus shale operations. utica where we went to with chesapeake. >> buy buy buy! >> let's go to randy in my home state of new jersey. randy. >> caller: hi, jim. boo-yah from the u.s. airways in philly. >> good to have you on the show. what's up? >> caller: i want to know what
6:37 pm
you think about finesar. >> people thought the quarter was good which is why it's had the great rounding pattern. starting to go up. in general, i don't like that group that much because i don't like the companies who are their customers. they're not paying up. let's go to ali in pennsylvania. >> caller: ba-ba-ba-boo-yah jim cramer from your home town philly. >> get out of town, man. we've got a big game, going to beat the bucs. what's up? >> caller: no one wants to talk this but unh, united health group. >> i'll see unh and go with aetna. could close the coventry deal. let's go to tom in new jersey. tom. >> caller: big jim, how are you tonight? >> couldn't be better, thank you. what about you? >> caller: great. a big montclair state university boo-yah to you. >> how about the high school
6:38 pm
championship go to the championship tomorrow. coach liberato at the meadowlands 4:00 be there, boo-yah. >> caller: hovnanian, long? >> no. not going to buy hovnanian. not when kohl brothers htoll br unbelievable quarter and can't lift. rob in new jersey. >> caller: hi, jim. a sexy boo-yah to you from new york city. i love you and everything that you do on your show, and i subscribe to everything you have. >> yes! thank you! >> caller: you're welcome. a few months ago you mentioned merrimack pharmaceutical, mrck, as a good biotech stock. i'm in at age 50. what is your opinion -- >> i think you have to buy more. i feel very good about that. remember, these specs don't necessarily pan out, but i do believe in merrimack, and i would urge you to stick with it. i'm going to rick in kentucky. rick. >> caller: rick in louisville, kentucky, home of the kentucky
6:39 pm
derby. race horse boo-yah. >> sweet. >> caller: my question is a retail company opened up location close to me. i think it's the best location in the city called cabela's. and to me that store is like a disneyland for grown-ups. >> i totally agree with you. unfortunately, they've had a spate of warm weather weather. it's a cold weather stock. as they told you in the conference call. but i do think cabela's is terrific. it may not explode yet but i think cabela is very good. and i totally agree with you. there's not much as fun as going to a cabela's. now we're going to go to mark in pennsylvania. mark! >> caller: hey, cramer. second-time caller, mark from wayne. >> oh, wayne. love it. what's up? >> caller: how about that -- >> i think that that has now surprised analee. remember with the fiscal cliff it is going to be difficult to figure out what these stocks are going to do from here. and that, ladies and gentlemen,
6:40 pm
is the conclusion of the lightning round. >> caller: the lr . >> announcer: the "lightning round" is sponsored by ameritrade. ♪ tweedly tweedly dee ♪ >> cisco, broadcom, and santand santander. >> i wanted to leave "squawk on the street" because they offered me three mani pedis in a half day but i didn't know what it is so i stayed and did the job. that's a stock joke. >> i think we're probably okay. i don't want the hollywood censors to crack down on me. >> whoo! >> and now jim cramer explains twitter. >> @jimcramer on twitter, 600,000 followers. >> thanks for tuning in to this week's edition of "jim cramer explains twitter." >> let's go to art, also from my
6:41 pm
home state of pennsylvania. art. >> caller: i'm a recovering eagles fan now living in steelers country. i told you last week about 360 on the "lightning round." >> yeah. sorry. i did have to momentarily wipe the tear from my eye. ♪ whatever's going on with the eagles is just -- well, they went off their own sports cliff. let's just put it that way. we're going to hear from one of my absolute favorite companies. that company is starbucks. when the company has its biannual, annual analyst day. can't have a biannual annual. let me start again. [ bleep ] i'm still paying $5.07 for my triple cappuccino each morning from the stock exchange. want one? just ask for the cramer. ♪ >> there's an awful lot of coffee in brazil. >> this deal's become a real hot button with the short selling community. smells good to me. it's the minlial semi-biannual
6:42 pm
annual -- now, that could be a good week that was. whether he's climbing everest, scuba diving the great barrier reef with sharks, or jumping into the market, he goes with people he trusts, which is why he trades with a company that doesn't nickel and dime him with hidden fees. so he can worry about other things, like what the market is doing and being ready, no matter what happens, which isn't rocket science. it's just common sense, from td ameritrade.
6:43 pm
6:44 pm
[ male announcer ] this december, remember -- what starts with adding a friend... ♪ ♪ ...could end with adding a close friend. ♪ the lexus december to remember sales event is on, offering some of our best values of the year. this is the pursuit of perfection. that makes watching tv even better. if your tv were a hot dog, zeebox would be some sort of fancy, french mustard. just like adding fancy mustard to a hotdog makes you go "woah!," zeebox adds video, info, and playalongs to spice up your favorite shows. download zeebox free and say "woah" every time you watch tv. before we answer your tweets
6:45 pm
it's time to go over some homework we're stockpiling here. on the last day of november kelly in pennsylvania wanted to know about micro systems, symbol mcrs. i sawed i'd get back to her because i was surprised the stock was doing so poorly. the leading developer of enterprise applications serving hotels, restaurants, retailers. the company provides complete information management solutions by simplified the cash register linking it back to the office. leading it back to the back office i should say. at first glance micro seems rather cheap, 15 times next year's earnings with a 15% growth rate. hold it. given the fact that the company has $7 in cash, it's not cheap. it's extremely cheap. plus we like the new ceo's strong computer services background. now, the business seems to stabilize if the stock is down 11% for the year, which gives you a nice entry point. buy buy buy! now, if you buy this one, do it with your eyes peeled for lower prices if case we go over the fiscal cliff. i almost need to do that a
6:46 pm
boilerplate warning for everything. fiscal cliff, the stock's he going to go lower because all stocks are going to go lower. but you can pick at micro systems for weakness. kelly in pennsylvania, this is the best idea a viewer has sent in in a very long time. another great one. raymond in florida wanted to know about xylen. the company, symbol xyl, not to be confused with the xylem with us a key part of the anatomy of plants which you may have learned when you were smoking that a.p. biology exam. now, raymond discovered that xylem's equipment was involved in pumping out the flooded brooklyn battery tunnel. 11 feet of water in that thing after superstorm sandy. i postponed giving him an answer because i hadn't looked at this company since it was spun out from itt last year. i always knew they had this great plumbing pipe division. xylem is an exciting pure play water company with products involved in the transportation, treatment of water. is there a way to play water? i'm using xylem from now on. this one sells water and waite water pumps along with
6:47 pm
filtration, disinfection, and biological treatment equipment primarily for utilities. stock's only up 3% for the year. but there's a reason. there's always a reason when the good ones aren't working. right? always a reason. and the answer is europe accounted for 37% of sales. >> the house of pain. >> yeah. that's last year. so we're concerned the weakness over there will dampen any positive effects from sandy. the president's asking for a huge ton of money now for sandy. if you want to own xylem i think you have to wait for a pullback maybe down to 24. that's a couple bucks below where it is now. but i am intrigued by this one. intrigued for certain. another great idea from the people who watch this show. and call it. last night kenny in illinois, he asked me what i thought about private bancorp. pvtp. a regional bank that operates in the u.s., also some exposure to atlanta and colorado. it's up 40%. a bank stock. thanks to improving credit quality and an exit from the
6:48 pm
bank's tarp overhang via an equity raise. what should we do with private bancorp before the fiscal cliff? i think the positives are clearly baked into the stock right here. this bank could do really well in an environment of rising interest rates, but the fed has made it very clear that rates will stay low until at least 2015. so you know what? let's take a pass on that one. let's do some tweets. thank you, viewers, for making it so that i have more than 600,000 followers. thank you very much. happened just the other day. let's take our first tweet from @nfalex who says what's your take on -- it's the old part of kraft. the stock price has been trading down sinced the old spinoff. it drives me crazy when stephanie link and i buy for the charitable trust. the charitable trust follows stocks. you can follow along with and they don't immediately pop. this is the p.m. of philip
6:49 pm
morris when altria split. it's the fast-growing snacks business overseas, it's going to be great. now here's the problem. it acts terribly. so wa you can say is therefore it's bad or you can do the homework like we did, recognize we've got a terrific restructuring, recognize it's going to have great growth, and you buy it and be a little patient. it is not going to run to 30 anytime soon. but p.m. didn't run to the 90s immediately either. and altria was stuck at 50 or 60 before it doubled. now, our second tweet comes from @tunderscore nathan 95. he says is it time to ring the register on j&j or keep holding? same question with epd, enterprise product partner partners, #boo-yah. when i see these it drives me crazy. why would you ring the register? did something happen? did the thesis go bad? are there fact changes? j&j is a company i think can
6:50 pm
split up and immediately go to 75, 80. and i think it will. and i've got to tell you something. there's no way you should sell epd. that's got one of the best, safest yields, and -- >> buy buy buy! >> -- i'd be a buyer. "mad money's" back after the break. >> announcer: keep up with cramer all day long. follow @jimcramer on twitter and tweet your questions. #madtweets. ♪ ♪ mom? dad?
6:51 pm
guys? [ engine turns over ] [ engine revs ] ♪ he'll be fine. [ male announcer ] more people are leaving bmw, mercedes and lexus for audi than ever before. take advantage of exceptional values during the season of audi event. take advantage of exceptional values when we got married. i had three kids. and she became the full time mother of three. it was soccer, and ballet, and cheerleading, and baseball. those years were crazy. so, as we go into this next phase, you know, a big part of it for us is that there isn't anything on the schedule.
6:52 pm
who, who might i ask is really doing well in retail?
6:53 pm
i've heard the latest out of macy's, walmart, kohl's, and last time on "mad money" acena. don't laugh. courtesy of acquisitions. we know things have gotten real tough, like no thanks. my feeling is with the fiscal cliff looming to the point where it's now mainstream that your take-home pay is going to be reduced by a shocking amount in one month if there's no deal. things ain't getting better. which is why this lulu lemmon number yesterday was astounding. it's so astounding. we have to go through the usual rigamarole to see it, though. first they had a spectacular 18% comparable same-store sales gain. the stores last year, they beat them by 18%. the best i've seen from any company that has hit my eyes in the last three months. by the way, that's coupled with some terrific gross margins. it looked like it was enough to send the stock to the low 70s instantly from the high 60s before it reported. but the downbeat high single-digit comp store
6:54 pm
projections, mentioned later in the earnings release, stopped the elf in its tracks, reversed it, and the stock dropped to the mid 60s almost instantly, again, all before the market was open. and there it lay until the conference call began. on that call you realized very quickly five things about lulu that no other company has. first the runway here is simple ji gigantic. they have about 200 stores in the u.s. they could triple that if they want, maybe even more. secondly, in the men's business, it was an afterthought. now coming on strong even though it's only 12% of the total revenues. the international ram subpoena just beginning. frankly you think it's going to be much bigger outside the united states. lulu itself a real proselytizer for the activities for which its clothes are meant. yoga. they have a great anecdote about what 457d in columbus, ohio after lulu lemon opened. a corncombia of yoga studios opened afterward. it doesn't seem like a fad. it is remarkable what they teach
6:55 pm
you at a lulu lemmon. and fifth they have clean inventory. that means even if it appeals to those who are wealthy, the proos points are ridiculous, i think, and they wouldn't have to take a lot of markdowns because they don't have a lot of inventory. lulu is in an enhave iable position that is shared by chipotle and whole foods. it's growing so much faster than anyone else that it gets a multiple that's tough to justify. 40 times next year's earnings. 4-0. that's because they're deciding it might be inexpensive on a price teernings multiple in the out years. looks expensive now but in 2015 it will be cheap. eventually that game ends. it did for whole foods when the large number made it possible for them to keep blowing away the estimates. and tended for chipotle with the rapid deceleration of same-store sales. i'm telling you in the true fashion of my good friend herb greenberg, both could happen to lulu. 14% of its shares have been sold short. shoerz you how the bears keep
6:56 pm
betting the momentum will stall and the stock will plummet. but that bet was unrequited this quarter because luol lou lemon even at $10 billion has more going for it in a secular fashion, the strength of the health movement with which it's heavily identified, and the technology of the clothes. technology. which is regarded as unique and more innovative than any other clothier out there, including technology-laden under armour. the ardor continues, the shorts get confounded ander, once again the quick draw types who don't bother to wait until the conference call get smoked to smithereens. it's not too late to buy lululemon. stick with cramer. >> announcer: it's a brutal full-contact sport. >> from the time the whistle blows -- >> traders bracing for what could turn out to be a wild session. >> -- to the last play of the game. >> markets absolutely getting hammered today. >> i know it's not easy, but i promise to keep fighting for
6:57 pm
you. >> announcer: jim cramer. leveling the playing field for all. >> the road is a tough one. but the payoff can be your greatest win of all. >> join "mad money's" training camp weeknights. i always wait until the last minute.
6:58 pm
can i still ship a gift in time for christmas? yeah, sure you can. great. where's your gift? uh...
6:59 pm
whew. [ male announcer ] break from the holiday stress. ship fedex express by december 22nd for christmas delivery. sven gets great rewards for his small business! how does this thing work? oh, i like it! [ garth ] sven's small business earns 2% cash back on every purchase, every day! woo-hoo!!! so that's ten security gators, right? put them on my spark card! why settle for less? testing hot tar... great businesses deserve great rewards! [ male announcer ] the spark business card from capital one. choose unlimited rewards with 2% cash back or double miles on every purchase, every day! what's in your wallet? here's your invoice.


info Stream Only

Uploaded by TV Archive on